Medical Equipment Manufacturer Will Pay $205,000 to State to Resolve Illegal Kickback Claims

"Free equipment" led to thousands of false claims for MassHealth payment...
Attorney General Maura Healey

BOSTON – ResMed Corp., a California-based manufacturer of medical equipment, will pay more than $205,000 to the state to resolve allegations that it provided improper kickbacks to Massachusetts medical suppliers and health care providers, Attorney General Maura Healey announced today.

The settlement agreement with AG Healey’s Office resolves allegations that ResMed violated both state and federal false claim statutes by providing free equipment to durable medical equipment (DME) suppliers, sleep laboratories, physicians, and other health care providers in exchange for patient referrals. These illegal arrangements between ResMed and health care providers resulted in the submission of thousands of false claims for payment to the state’s Medicaid Program (MassHealth). 

“This settlement protects our health care resources for those in Massachusetts who need them the most,” said AG Healey. “Patients should be able to trust that medical equipment companies are following the law and engaging in fair and honest business practices.”

ResMed provides various health care goods and services, including manufacturing and selling positive airway pressure machines, masks, and related supplies that are designed to treat or diagnose sleep disorders.

This settlement results from several qui tam lawsuits filed in the United States District Court for the Districts of California, South Carolina, Iowa and New York. A National Association of Medicaid Fraud Control Units (“NAMFCU”) team investigated the allegations in conjunction with the Department of Justice and United States Attorneys’ Offices in California and South Carolina.

The total value of the settlement is $39.5 million of which $4.47 million will go to state Medicaid programs. Massachusetts will receive a total of $205,933.29.

In the Massachusetts AG’s Office, this matter was handled by Managing Attorney Jennifer Goldstein of AG Healey’s Medicaid Fraud Division. welcomes thoughtful comments and the varied opinions of our readers. We are in no way obligated to post or allow comments that our moderators deem inappropriate. We reserve the right to delete comments we perceive as profane, vulgar, threatening, offensive, racially-biased, homophobic, slanderous, hateful or just plain rude. Commenters may not attack or insult other commenters, readers or writers. Commenters who persist in posting inappropriate comments will be banned from commenting on